XLinux PPP: wvdial exit code 16 no debug details

I'm trying to use a 3G USB modem on a Rapsbian RPi and all goes well, except for some reason the PPP disconnects with exit code 16. I have debug mode enabled, but it doesn't say nothing, except that authentication is successful. Please see details below: WvDial: Internet dialer version 1.61 Initializing modem. Sending: ATZ ATZ OK Sending: AT+CPIN=XXXX AT+CPIN=XXXX OK Sending: ATQ0 V1 E1 S0=0 &C1 &D2 +FCLASS=0 ATQ0 V1 E1 S0=0 &C1 &D2 +FCLASS=0 OK Sending: AT+CGDCONT=1,"IP","internet" AT+CGDCONT=1,"IP","internet" OK Modem initialized. Sending: ATD*99# Waiting for carrier. ATD*99# CONNECT 3600000 Carrier detected. Starting PPP immediately. Starting pppd at Sun Dec 7 22:23:20 2014 Pid of pppd: 2967 pppd: 8�fP�fh�f��f؉f0�f Using interface ppp0 pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f Authentication (CHAP) started pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f Authentication (CHAP) successful pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f pppd: 8�fP�fh�f��f؉f0�f Disconnecting at Sun Dec 7 22:23:24 2014 The PPP daemon has died: A modem hung up the phone (exit code = 16) man pppd explains pppd error codes in more detail. Try again and look into /var/log/messages and the wvdial and pppd man pages for more information. Auto Reconnect will be attempted in 5 seconds The /var/log/messages shows: Dec 7 22:58:45 raspberrypi pppd: pppd 2.4.5 started by root, uid 0 Dec 7 22:58:45 raspberrypi pppd: Using interface ppp0 Dec 7 22:58:45 raspberrypi pppd: Connect: ppp0 /dev/ttyUSB2 Dec 7 22:58:45 raspberrypi pppd: CHAP authentication succeeded Dec 7 22:58:45 raspberrypi pppd: CHAP authentication succeeded Dec 7 22:58:48 raspberrypi pppd: Modem hangup Dec 7 22:58:48 raspberrypi pppd: Connection terminated. Dec 7 22:58:48 raspberrypi pppd: Exit.